In　recent　years,　several　factors　such　as　environmental　pollution,　declining　fossil　fuel　supplies,　and　product　price　volatility　have　led　to　most　countries　investing　in　renewable　energy　sources.　In　particular,　the　development　of　photovoltaic　(PV)　microgrids,　which　can　be　standalone,　off-grid　connected　or　grid-connected,　is　seen　as　one　of　the　most　viable　solutions　that　could　help　developing　countries　such　as　Rwanda　to　minimize　problems　related　to　energy　shortage.　The　country＇s　current　electrification　rate　is　estimated　to　be　59.7%,　and　hydropower　remains　Rwanda＇s　primary　source　of　energy　(with　over　43.8%　of　its　total　energy　supplies)　despite　advances　in　solar　technology.　In　order　to　provide　affordable　electricity　to　low-income　households,　the　government　of　Rwanda　has　pledged　to　achieve　48%　of　its　overal　electrification　goals　from　off-grid　solar　systems　by　2024.　In　this　paper,　we　develop　a　cost-effective　power　generation　model　for　a　solar　PV　system　to　power　households　in　rural　areas　in　Rwanda　at　a　reduced　cost.　A　performance　comparison　between　a　single　household　and　a　microgrid　PV　system　is　conducted　by　developing　efficient　and　low-cost　off-grid　PV　systems.　The　battery　model　for　these　two　systems　is　1.6　kWh　daily　load　with　0.30　kW　peak　load　for　a　single　household　and　193.05　kWh/day　with　20.64　kW　peak　load　for　an　off-grid　PV　microgrid.　The　hybrid　optimization　model　for　electric　renewable　(HOMER)　software　is　used　to　determine　the　system　size　and　its　life　cycle　cost　including　the　levelized　cost　of　energy　(LCOE)　and　net　present　cost　(NPC)　for　each　of　these　power　generation　models.　The　analysis　shows　that　the　optimal　system＇s　NPC,　LCOE,　electricity　production,　and　operating　cost　are　estimated　to　1,166,898.0　USD,　1.28　(USD/kWh),　221,　and　715.0　(kWh　per　year,　37,965.91　(USD　per　year),　respectively,　for　microgrid　and　9284.4(USD),　1.23　(USD/kWh),　and　2426.0　(kWh　per　year,　428.08　(USD　per　year),　respectively,　for　a　single　household　(standalone).　The　LCOE　of　a　standalone　PV　system　of　an　independent　household　was　found　to　be　cost-effective　compared　with　a　microgrid　PV　system　that　supplies　electricity　to　a　rural　community　in　Rwanda.